We demonstrate that ethylammonium copper chloride, (C2H5NH3)2CuCl4, a member of the hybrid perovskite family is an electrically polar and magnetic compound with dielectric anomaly around the Curie point (247 K). We have found large spontaneous electric polarization below this point accompanied with a color change in the sample. The system is also ferroelectric, with large remnant polarization (37{mu}C/cm2) that is comparable to classical ferroelectric compounds. The results are ascribed to hydrogen-bond ordering of the organic chains. The coexistence of ferroelectricity and dominant ferromagnetic interactions allows to relate the sample to a rare group of magnetic multiferroic compounds. In such hybrid perovskites the underlying hydrogen bonding of easily tunable organic building blocks in combination with the 3d transition-metal layers offers an emerging pathway to engineer multifuctional multiferroics.